Prevention of money laundering

The audit focused on the prevention of money laundering. Money laundering means trying to make illegally obtained money appear to be legal. The aim is to circulate funds through a legal payment system to conceal their actual nature, origin or owners. It is impossible to accurately estimate the total amount of funds subject to money laundering, but based on international estimates, the annual amount in Finland can be considerable.

The audit was launched because money laundering is a significant form of crime affecting central government finances. International assessments, for example, have paid attention to the effectiveness of the prevention of money laundering. The audit assessed the preconditions of anti-money laundering activities and examined whether the activities are planned and organised in such a way that it is possible to combat money laundering effectively.

The preconditions for effective prevention of money laundering have been improved in recent years particularly through legislative amendments. However, few performance targets are set for the prevention of money laundering. Assessment of the effectiveness of the prevention of money laundering would require an overall view and targets that cover the entire continuum of anti-money laundering activities and related actors.

The most important guidance document on the prevention of money laundering is the national risk assessment, which is based on the Money Laundering Act. The risk assessment should set more targeted objectives, allocate responsibilities for them and describe the authorities’ resources for anti-money laundering activities more comprehensively. The authorities have used project funding for preparing the risk assessment, which poses risks to the continuity of the work. The Ministry of the Interior and the Ministry of Finance should therefore ensure that resources are allocated for the preparation of the risk assessment from the operating expenditure appropriation.